Balancing Your Checkbook 101
If you want to keep your finances intact and orderly, you should learn how to properly balance your checkbook. And that’s what we are going to demonstrate for you here from Bankster. With the many expenses you incur each day, it is possible for you to commit mistakes in verifying if your personal records are the same as the bank records. Once you have forgotten to record a transaction, your checks may start to bounce and you’ll likely have to shell out dozens or more dollars because of corresponding penalties. If you want to balance a checkbook, just follow these simple tips:
Check your checks.
You have to make sure that all checks have been cleared by the bank. To manage all those checks, sort the canceled checks using the check number and follow the list of the checks that have been cleared as shown in your statement of account. Make sure that the amount you have recorded is the same amount the bank record says. Check off all canceled and returned checks or those that are on the check listing.
Whenever you deposit money, record the amount in your cash register. Check all your paycheck stubs, deposit slips and the like to verify with bank records. Check off each deposit made.
Check your debit card purchases and ATM withdrawals.
Check off each transaction made through debit card purchases and ATM withdrawals. Record any transactions that the bank doesn’t include in your check registry. Also, take note of interests and additional bank fees.
Take note of outstanding checks and deposits.
In the balancing form of your checkbook register look for column two and list all your outstanding checks plus any outstanding or current debit purchases or any related ATM withdrawals. Make a grand total at the end of the column.
Using column one in your checkbook register, list all outstanding deposits and compute the total. You can then enter the ending balance as shown on your bank records. Use line one of the bottom section of your checkbook balancing form.
Enter outstanding checks and deposits.
Use line two to enter the total outstanding deposits from column one. Then, enter the total outstanding checks from column two.
Start calculating your balance.
Using a calculator, compute the total from lines one through three as specified by the plus and minus signs of the form. On line four, promptly enter the new total. This new total should be equal to the balance shown in your checkbook register. If there are errors, look for common mistakes such as reversed numbers (e.g. $24 instead of $ 42) or adding instead of subtracting numbers.